you're watching cbs 5 eyewitness news in high definition. the white house and congress make a deal. what the fiscal cliff agreement means for everyone's paycheck. good evening. i'm brian hackney. >> and i'm elizabeth cook. the u.s. senate has reached a deal in the fiscal cliff negotiations. cnn is reporting they just voted to approve it. all the details of the deal and

what it means for you and your finances. >> reporter: lawmakers postponed the automatic spending cuts that would have hit the pentagon and other federal agencies this week. they did strike a deal on taxes. three hours before the midnight deadline, senate majority leader mitch mcconnell and vice president joe biden emerged with a compromise on taxes and agreed to wait on slashing spending. >> this was the mini cliff. the big cliff still lies in front of us. >> reporter: president obama had scolded congress for waiting so long. >> one thing we can count on with respect to this congress is that if there's even one second left before you have to do what you're supposed to do, they will use that last second. >> reporter: the bush-era tax cuts remain in place for individuals earning as much as $400,000 a year, far above the 250,000 level on which

president obama campaigned. but those making more will see higher income taxes, capital gains, plus a new health care reform surtax. rob wood says you'll notice in your paycheck one popular tax cut will be history. >> the average person, say, earning $50,000 a year is going to pay about $1,000 more in payroll taxes in 2013. >> reporter: the fiscal cliff agreement also increases taxes on estates worth more than $5 million and extends unemployment benefits for one year and keeps the child tax credit for workers who don't earn enough to pay income taxes. the alternative minimum tax got a pat for inin addition. that shields 33 million taxpayers. even with the budget compromise, get ready for a confusing tax season. >> it's very likely that people will not be able to file on time and not be able to get their refunds and that the irs computers will not be all set up to take into account the new laws that we think are being

passed. >> reporter: house members are due back to the capitol at noon tomorrow and they're going to vote on the compromise bill that the senate just passed. sharon chin, cbs 5 eyewitness news. breaking news out of sacramento tonight. five people have been shot at a new year's eve celebration along the riverfront. at least two have died. about 40,000 people were gathered for a fireworks show when the shots rang out in front of a bar on second street. so far, no word on what triggered the shooting, and there have been no arrests. police cancelled the midnight fireworks show that was scheduled tonight. and exciting and unexpected. a man hopped a fence and took off across the tarmac. the man actually made it across two runways and was headed for the terminal before police finally caught up with him. it's unclear exactly what his intent was. but police say he suffers from a mental illness. tens of thousands of

partiers are streaming into san francisco, ready to ring in the new year. elissa harrington is at the embarcadero with a behind-the- scenes look at the biggest party in town. >> reporter: well, it is a clear night, perfect for that fireworks show that starts right at the stroke of midnight. >> woo! >> reporter: wild wigs, whacky glasses, champagne. it's new year's eve with thousands ringing in 2013 in san francisco on this clear and chilly night. >> pretty cold. it keeps my ears warm. >> it was sawsome. hey, if the giants got a world series again -- i'm a huge giants fan. >> reporter: crowds stake out the embarcadero every year for one main thing. the fireworks. jeff thomas with pyrospectacular shows us some last-minute preparations. they're in charge of new year's eve, also the 4th of july and the golden gate bridge anniversary show, behind the

magic of about 5,000 works and effects. a crew of 20 and lots of preparation. >> there's months of design that we do, actually working on the computer, designing how we want, when we want the shells to go off. there is a sound track that we broadcast on the embarcadero. >> reporter: the show only lasts about 15 minutes, set off from two barges in the water. >> there are a few surprises that i won't talk about. it's going to be filled with a few different effects and lots of excitement. >> reporter: that excitement in full effect back on land, where the party is just getting started. people are starting to get excited out here. there are plenty of safe options to get home. there are extended hours, until 3 a.m. less than an hour now. >> the bay area's most dangerous live shot.

chilly weather should keep partyers hopping tonight. >> roberta is here to tell us how low it will go. >> right now, this is the scene, looking out towards the embarcadero. folks are out and about at 49 degrees. but check out livermore at 40, santa rosa at 36. we do have partly cloudy conditions in redwood city. temperature span at midnight, 35 to 49 with a few clouds from town to town. otherwise, tonight, overnight we'll dip down below freezing. throughout santa rosa. colder night slated for tomorrow. we'll have the details, coming up. the city of oakland doesn't want this new year's to be a repeat of last year. christin ayers says police have a two-word message for partyers. no guns. >> we thought we were in a fire zone. >> reporter: john is talking about the sound of automatic celebratory gunfire every new

year's eve. this year, he has a plan. >> i will be going in four hours before the gunfire starts. >> reporter: the new year's eve gunfire is documented in youtube videos, year after year. >> happy new year and happy holidays! >> reporter: this video shows a shooter who claims to be in east oakland, firing round after round from what appears to be a shotgun. but oakland police chief howard jordan insists this year will be different. >> we actually have a team of officer dedicated solely to respond to gunfire call in the city tonight. >> reporter: officers are using enhanced shot spotter technology, a system that records the sound and location of gunfire and sends the information directly to an officer's patrol car laptop. >> we are going to be out there. we are going to be watching you. >> people are going to do what

they're going to do, regardless, so i just hope that people don't get hurt. i just hope people are safe tonight. >> reporter: some oakland residents say no matter how many officers are out chasing gunfire tonight... >> there are irresponsible people. >> reporter: oakland police are also stepping is up dui patrols. in oakland, christin ayers, cbs 5 eyewitness news. we're following breaking news out of san francisco's fisherman's wharf right now. san francisco police say a person was shot in the hand at 211 jefferson at mesa. police are reportedly looking for the suspected gunman in the area. we'll bring you more information as it comes into our newsroom. once again, a person, according to sfpd, was shot in the hand

on fisherman's wharf. high society meets high explosives. a new york city couple is under arrest after police say they found bomb-making materials and a terrorist encyclopedia in their apartment. they found a highly explosive white powder used to make bombs. they also found a sawed off shotgun and a book on how to make bombs. the woman was arrested while she was pregnant, and she gave birth in custody. and she's the doctor of a prominent new york doctor. her boyfriend is a harvard graduate. doctors are monitoring secretary of state hillary clinton for a blood clot behind her right ear and a vein between the brain and the skull. mrs. clinton's doctors say it did not cause a stroke or neurological damage and they are dissolving it with blood thinners. the 65-year-old suffered a concussion earlier this month after she fell at her home. >> we know that two to three weeks ago, she fainted and hit

her head. now, at that time, she could have had trauma. she could have ripped that vein. on top of that, we were told she had a stomach virus. we know that dehydration increases the odds of having a cough. >> clinton's doctors say she is in good spirits and making excellent progress. they'll monitor in the hospital for a few more days. well, in just a few moments when the calendar clips, so will taxpayers. which bay area city will boast the highest sales tax come tomorrow. cars that scan your fingerprints. the new technology that could put a stop to drunk driving. what would you do if you found this box lying in the street? the 911 call that surprised even the cops.

passed legislation to block breaking news out of washington right now. the senate has just passed legislation to block the impact of across-the-board tax increases and spending cuts that make up the fiscal cliff. the vote was an overwhelming 89- 8. a house vote is expected tomorrow. meanwhile, back on the west coast, here's a live look at the embarcadero. san francisco now 45 minutes away from the year 2013. tonight, up to a quarter of a

million people are expected for the midnight fireworks show. many of them staked out their spots hours ago and they are hanging around in spite of temperatures plummeting into the 40's now. every year brings new changes. some good, some bad, and some less. less change in your pocket anyway. mike sugerman says get ready to pay more for everything, starting tomorrow. >> reporter: the city of el cerrito, where ups notices gather, because no one is there to collect them. it has the dubious distinction of having the highest sales tax in california. >> it's 5 cents. it adds up. i'm only 21, and i spend money like it's nothing. >> reporter: now, when she spends money like it's nothing, she's going to spend an extra quarter of a cent every time she spends $1. is that a big deal? >> nobody likes it but i guess

if it has to be, it has to be. >> reporter: steve is the manager of a local tire store. he's not worried. governor brown's prop 30 raised taxes. and it hits starting tomorrow. other east bay cities are up in the 9% raise, with bigger cities like san francisco the lowest. steve's tire store is right on the el cerrito-richmond border. >> sales tax right here tomorrow, 9%. >> reporter: the tax from prop 30 will last the next four years. you've been warned. ride the bumper cars at your own risk. and if you get hurt, you can't sue. today the state supreme court

ruled a south bay doctor could not sue great america for breaking her risk on the bumper cars. the court said there's a, quote, assumption of risk on such rides. the chp will be looking for anyone who shouldn't be on the roads. and here's a sobering thought. a dui can cost up to $7,000. mark shows us how new technology could put the brakes on drunk drivers. >> so we want to take this device and implement it into the car. >> reporter: bud is leading a research team creating technology that could prevent 10,000 drunk driving deaths a car. unlike this breathalyzer test, these two new sensors would test anyone behind the wheel. >> the idea is to develop a sensor to prevent anyone from above the legal limit from moving the vehicle and driving. >> reporter: it shines an

infrared light into the driver's finger and measures the alcohol content in the tissue. this one would measure molecules in a driver's breath. >> how far away is this technology from being ready? >> we're probably looking at eight to ten years away, is when you'd start seeing it inside vehicles. >> reporter: the $10 million funding is split between 16 car makers and the federal government. but it's opposed by the american beverage institute. the group made the following statement. drunk driving fatalities are at historically low levels. we shouldn't try to solve what's left of the drunk driving problem by targeting all americans with all-sensing technology. on the east coast, it's already 2013. about a million people from all over the world got the

times square treatment. the revelers found it all quite cold but quite worth it. lots of smooching going on down there. it is actually colder in santa rosa right now. santa rosa is 36. new york is 38. people were out and about tonight, all bundled up in layers of jackets and scarfs. look at the little ones there! and notice the very dry pavement. let's confirm that with our live hi-def doppler. not a raindrop in sight. that wasn't the case earlier, where we did have rain showers skirting to the west of san francisco. this is the scene now at the embarcadero. notice the people out flocking around, waiting for the fireworks, which they'll be able to see. we have clear skies currently in san francisco. 49 degrees. but look at santa rosa. already into the mid 30's after

a high of 53. oakland, low 40's. at midnight, 35 to 49. in fairfield and vacaville, slightly above freezing. 30's common around the peninsula. things are slowing down at the golden gate bridge now. people are out pretty much where they need to be at this hour. this time last year, we had eleven days notched up. so the extended forecast calls for a freeze watch through wednesday morning. i thought this was really interesting. look at santa rosa. 144% of normal for this time of the year. compare that with last year. no two winters the same. this storm obviously falling apart at the seams as it bangs up against the bay area, leaving us with the partly cloudy skies. tomorrow very similar to today.

but we'll notice a gradual warming trend as we slide towards the weekend. as we take a look at the seven- day forecast, not a raindrop in sight until about january 9. that's right. that is your pinpoint forecast. happy new year, everyone! eyewitness use continues. we'll be right back. ,,,,,,,,,,,,,,

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the street? cbs reporter kristine la call, that surpr so what would you do if you found an envelope of cash lying in the street? >> exactly what the person in this story did. the 911 call that surprised even the police. >> reporter: gerardo and his friends went out for pizza, and literally stumbled upon nearly $800. >> as he was exiting the passenger seat, the first step is where he landed right on the envelope. >> reporter: inside, a plain white envelope, just laying in the parking lot, with a stack of cash. >> our first thought was, let's take it. then we decided, wait, wait, no. >> reporter: the 18-year-old college student decided to call police and turn the money in. >> the cop was actually

surprised. he said, we really don't get calls like this, especially teenagers, which is what i guess surprised them the most. >> reporter: while we were in the middle of reporting our story, a woman came out of this cell phone store and said she believed the money belonged to her manager. we called gerardo back and put the two of them in touch. turns out she was right. the employee was able to confirm the exact amount of cash on the envelope as well as the name written on it. over the phone, the manager of the store thanked gerardo, telling him he had dropped the money on the way to deposit it in the bang and thought he was going to have to pay for it out of his paycheck. he then offered the teen a $100 reward. >> how does it feel to do a good deed like this? >> mmm, nothing really. i really don't feel that different. i just feel like i just did what i would expect from other people to do for me. >> reporter: he may be humble but his mother is beaming over

her son's good deed. >> i feel so proud about him and his friends! >> aw. she deserves to be proud. >> a nice dose of good news, which is not what a number of nfl coaches got today. >> you gonna do that to me? >> anyway, we'll go ahead and send this last forecast of 2012 out with a bang! ,,,,,[ male announcer ] the career landscape of america is changing.

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shooting. we're hearing very quickly, breaking news tonight. we told you about an earlier shooting at fisherman's wharf. now san francisco police at the scene of a second shooting. we're hearing reports that a young boy may have been shot at pier 23. as soon as we learn more, we'll let you know. today, seven head coaches, five general managers were fired, after going 4-and-12, raiders coach dennis allen is safe. offensive coordinator napa was fired today. napa was in his second tour of duty with the raiders.

he averaged only 18.1 points per game. stanford football's final reps for tomorrow's rose bowl against wisconsin. it will be the cardinals's first rose bowl appearance since 2000. stanford has not won the game since 1972. harvard and moraga, facing st. marys. early on, it was all crimson. macy with a lay-up inside. check mitchell young, to bring st. mary's to within one. it's young again who gets fouled with one seconds left. he nails both free throws to win the game. 70-69, after a furious 14-2 run. we have a special top five tonight. the top five best bay area sports moments for 2012. no.

5, june 13, matt cain's perfect game against houston. it was a perfect game. no. 4, november 30, stanford beats ucla and the pac 12 championship to reach the rose bowl for the first time in 13 years. no. 3, the a's win the al west, the only day the a's were in first place. no. 2, january 14, niners beat the saints in the play-offs. alex smith, yes, it's the vern davis post. nine seconds left. and no. 1, of course, october 28, no surprise. the giants sweep the tigers to win the world series, their second ball classic in three years! we will be right back. ,,,,,,,,,,,,,,,,,,,,

wanted to quickly update you on two unconfirmed reports, one at pier 23, another one at fisherman's wharf, shootings. they are unconfirmed reports. since we don't want to end the year on a note like that, let's not. let's head out to treasure island where we've got a shunning shot. >> gorgeous shot. say good-bye to 2012.

a reminder to be careful out there. take public transportation. have a wonderful new year! >> and happy new year! ( band playing "late show" theme ) >> from new york, the greatest city in the world, it's the "late show" with david letterman. tonight... plus paul shaffer and the cbs orchestra. and now, a metallic alloy-- david letterman! ( cheers and applause ) captioning sponsored by worldwide pants and cbs ( band playing "late show" theme ) ( cheers and applause )